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Procurement Bill [Lords] - Sitting 7

09 February 2023

Proposing MP
Dumfriesshire, Clydesdale and Tweeddale
Type
Public Bill Committee

At a Glance

Issue Summary

The statement addresses the need to strengthen clauses in the Procurement Bill to prevent conflicts of interest and ensure transparency in procurement processes. The statement discusses the Procurement Bill's provisions on conflicts of interest and requests that certain amendments be withdrawn. The statement addresses the Procurement Bill's clauses related to below-threshold contracts, which aim to regulate procurements under specific value thresholds and ensure fair treatment for small businesses. The statement discusses the implementation of the UK's international procurement obligations through the Procurement Bill. The statement discusses the importance of adhering to international obligations in procurement to maintain the UK's standing in the global community and its ability to support allies, such as Ukraine. The statement discusses the Procurement Bill's clause 90 and its implications for devolved competencies in Scotland. The statement discusses the Procurement Bill's impact on Scotland and the devolution settlement. The discussion centres on clauses related to pipeline notices, exemptions from duties to publish or disclose information, and regulations for an online system in procurement. The statement addresses amendments to Clause 94 of the Procurement Bill, focusing on clarifying the use of electronic communication systems and their application in commercial circumstances. The statement discusses the Procurement Bill's provisions related to information sharing, data protection, and civil enforcement duties. The statement discusses amendments and clauses related to legal remedies and protections for suppliers under the Procurement Bill. The statement discusses clauses 104, 105, and 106 of the Procurement Bill, which establish procedures for procurement investigations and recommendations by Ministers and statutory guidance to ensure compliance with procurement requirements. The statement discusses the oversight of procurement in the Procurement Bill and expresses concerns about the reduction in ambition compared to the Green Paper's proposals.

Action Requested

David Mundell is discussing proposed amendments that aim to broaden the definition of 'influences' in procurement decisions to include civil servants, government contractors or consultants, special advisers, parliamentarians, and political appointees. The goal is to enhance scrutiny and prevent undue influence on procurement decisions.

Key Facts

  • £10 billion of public money was written off due to ineffective PPE procurement.
  • Companies in the VIP lane were ten times more likely to win contracts during the pandemic.
  • Amendment 117 aims to include specific actors who may indirectly influence procurement decisions.
  • Amendment 116 is considered impractically broad.
  • Clause 80 sets out obligations for identifying conflicts of interest.
  • Clause 81 outlines duties to mitigate conflicts of interest.
  • Clause 82 places specific duties on contracting authorities regarding conflicts assessments.
  • Clause 83 defines regulated below-threshold contracts.
  • Clause 84 prevents burdensome pre-qualification questionnaires that screen out suppliers.
  • Clause 85 imposes a duty on contracting authorities to consider SME participation.
  • Clause 86 requires publishing tender notices for certain procurements.
  • Details of contract winners and values must be published on the central platform within a reasonable timeframe after contracts are entered into.
  • Payment terms for below-threshold regulated contracts are set at 30 days.
  • The UK is party to 24 international procurement agreements listed in schedule 9.
  • Clause 88 identifies suppliers from treaty states entitled to benefit from these agreements.
  • Separate primary legislation is required for implementing rule changes that might affect food, environmental standards or health service control.
  • Defence Committee concluded the Army would be 'hopelessly under-equipped' in March 2021.
  • UK-Australia and UK-New Zealand free trade agreements commit to fair, transparent selection processes for suppliers.
  • Bluetree Group in Wath upon Dearne aims to become net zero by 2035.
  • The Procurement Bill aims to confer power for implementing international procurement agreements through secondary legislation.
  • Clause 90 includes an amendment allowing UK Ministers or Scottish Ministers to consider regulations necessary for ratifying international agreements.
  • Amendment 102 proposes that a UK Minister must acquire the consent of Scottish Ministers before acting under clause 90.
  • The Procurement Bill does not confer decision-making rights for Scotland on Members of Parliament.
  • Amendment 102 proposed by the hon. Member for Aberdeen North is rejected in favor of Government amendment 59.
  • Clause 90 allows regulations only if a Minister of the Crown or Scottish Ministers considers them necessary to ratify or comply with an international agreement.
  • Contracting authorities must publish pipeline notices if they reasonably expect to pay over £100 million under relevant contracts.
  • Pipeline notices set out public contracts worth more than £2 million with an estimated value, providing advance notice within 56 days of the financial year start.
  • Exemptions for withholding information include national security and sensitive commercial interests, subject to a public interest test for sensitive commercial information.
  • Clause 93 grants power to set regulations on form, content, and place of published information, allowing flexibility in tailoring transparency obligations over time.
  • Amendment 62 limits the free-of-charge obligation beyond contract entry.
  • Amendment 61, 63, and 64 ensure the clause applies only to covered procurement.
  • The amendments address concerns about inhibiting common practices in utilities dynamic markets and secure systems.
  • Clause 95 requires contracting authorities to use a central digital platform for information sharing.
  • The register of suppliers will allow 'tell us once' data submission across the public sector.
  • Clause 96 ensures the Bill does not contravene the Data Protection Act 2018.
  • Clause 97 allows suppliers to hold contracting authorities accountable through civil proceedings if they suffer loss due to non-compliance.
  • Government amendment 65 ensures that claims on grounds eligible for debarment appeals cannot be brought under part 9 of the Bill.
  • Clause 98 introduces automatic suspension, preventing contract proceeding until legal challenges are resolved.
  • Clause 99 outlines interim remedies applicable before the determination of any legal claim.
  • Clause 100 deals with pre-contractual remedies for suppliers seeking fair opportunities to bid.
  • Clause 103 sets timescales for raising claims under the Bill, ranging from 30 days to six months depending on the nature of the breach.
  • Clause 104 enables Ministers or relevant authorities to investigate contracting authorities’ compliance with procurement requirements.
  • Clause 105 allows for statutory recommendations following an investigation if a breach of the Bill's requirements is identified.
  • Clause 106 permits issuing statutory guidance to wider contracting authorities based on lessons from specific investigations.
  • The clauses concern oversight of procurement compliance.
  • The Green Paper proposed a new unit with independent panel experts to oversee public procurement.
  • The Bill does not mention a procurement review unit and refers only to an “appropriate authority”.
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